After two years, a convenience store owner who has the money he used to support his business seized, has been fully refunded.
In 2014, convenience store owner Khalid Quran had $150,000 seized from his personal account by the IRS, due to frequent cash withdrawals that raised a red flag for the IRS. Quran was able to prove that he was not taking part in any illegal actions, but the fight to have his money returned would not be an easy one.
However, according to a report from CPA Practice Advisor, now, two years following the seizure of his funds, Quran has finally gotten his money returned to him. Quran, after his money was taken, acquired a tax professional to assist him in proving his innocence and in getting his money back. It is not likely that Quran would have received the refund without the help of this tax professional who works for the Institute for Justice (IJ), a nonprofit libertarian law firm, which took ton Quran’s case on a pro bono basis.
According to CPA Practice Advisor, the IRS, acting under the authority of the Bank Security Act (BSA), worked quickly to seize Quran’s money, intending to thwart drug trafficking, money laundering, organized crime or terrorist activities, but there was no evidence against Quran other than a series of cash withdrawals, which were normal for someone who owns a small convenience store.
The Bank Secrecy Act (BSA) requires business transactions involving more than $10,000 cash to be reported with a Form 8300 to the IRS, but if the IRS sees a series of smaller transactions that seem to be made in avoidance of this reporting rule – an act known as “structuring” – it has permission to seize the person’s bank accounts. These are the terms under which the IRS confiscated Quran’s funds.
CPA Practice Advisor stated that the IRS is currently on high alert for structuring, but a number of legitimate business people are at risk of false accusations and the wrongful seizure of funds.
Luckily for Quran, he was able to keep his business afloat with a $50,000 line of credit that he acquired after the IRS took his money, according to CPA Practice Advisor.
According to information from CPA Practice Advisor, the IRS has since revised its policies for the pursual of structuring cases. Since October 2014, the IRS will only pursue a series of cash transactions under $10,000 if there is indication of foul play. Despite the policy change, however, the agency is still handling more than 600 cases of taxpayers who had about $43 million seized since 2007.
